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Amanda Blanc, the chief executive of insurance company Aviva, has raised concerns about the future insurability of homes currently being built in flood-prone areas. She highlighted that while the risk of flooding is “absolutely increasing,” construction continues in locations vulnerable to flooding, with an estimated 115,000 new homes projected to be built in flood zones over the next ten years. Blanc emphasized the need to carefully reconsider where new housing developments are being established.
Data from the Environment Agency reveals that approximately 6.3 million properties in England, including homes and businesses, face some level of flood risk. Supporting this, Aviva’s research indicates that about one in nine houses built between 2022 and 2024 fall into medium to high flood risk categories. Blanc told the BBC that England is undoubtedly building properties that may be impossible to insure in the future, underscoring the importance of being mindful of known flood zones. She also advocated for different construction techniques for buildings near flood areas, noting that modifications can reduce their vulnerability.
Further findings from Aviva suggest that nearly one-third of new homes constructed in 2024 will be exposed to some flooding risk by 2050, and one in seven will face medium to high flood risk as extreme weather events become more frequent and severe. The Met Office has reported that with ongoing global warming, severe wet winters like the one seen in the UK during 2023-24, once considered an 80-year occurrence, are now expected every 20 years. In response, a spokesperson from the Department for Environment, Food and Rural Affairs highlighted government efforts, stating that substantial investment has been directed toward protecting almost 900,000 properties from flood damage. The government also plans to restrict housebuilding in flood-prone areas to ensure safe development of 1.5 million new homes.
Blanc mentioned that Aviva is prepared to dedicate capital to infrastructure projects and already invests over £100 billion across the UK, including £35 billion in infrastructure sectors such as healthcare, education, and renewable energy. She stressed the company’s commitment to investing in UK infrastructure, which benefits pension holders and other stakeholders, although she acknowledged that further details are necessary to realize these investments fully. Addressing the current government discussion around the pension triple lock—a policy guaranteeing state pension increases by the highest of wage growth, inflation, or 2.5%—Blanc declined to suggest what actions should be taken. However, she noted that any reduction in state pension growth could increase reliance on private pensions, implying a shift in how retirement income might need to be balanced in the future
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